Brazil’s Parliament Deliberates Bill to Establish Bitcoin Strategic Reserve with 5% of Foreign Reserves

On June 12, the Brazilian Chamber of Deputies is deliberating Bill PL 4501/2024, which proposes the creation of a Bitcoin sovereign strategic reserve, known as ResBit, by allocating up to 5% of the country’s foreign exchange reserves to Bitcoin purchases. Introduced by Congressman Eros Biondini in 2024, the bill aims to diversify Brazil’s national assets, protect against currency volatility and geopolitical risks, and support blockchain technology development, including the central bank’s digital currency, Drex. If approved, Brazil could become one of the few nations, alongside El Salvador, to hold Bitcoin as a strategic reserve asset, potentially setting a precedent for cryptocurrency adoption in Latin America.

Details of the Proposed Bill

Bill PL 4501/2024 outlines a framework for the Brazilian Central Bank and Ministry of Finance to jointly oversee the ResBit program. The initiative would involve acquiring Bitcoin to represent up to 5% of Brazil’s $3.41 billion foreign reserves. To safeguard the assets, the bill mandates the use of cold wallets for storage, a widely recognized method for mitigating cyber risks. Additionally, it requires transparency through audited reports submitted to Congress every six months, detailing acquisition strategies and reserve performance.

The bill’s rapporteur, Congressman Luiz Gastão, has issued a favorable recommendation for its approval during an committee review, advocating for a gradual implementation to balance Bitcoin’s potential benefits with its price volatility. Gastão emphasized that a Bitcoin reserve would help Brazil diversify its assets, reduce reliance on fiat currencies, and counter exchange rate volatility. Gastão pledged that the bill would adopt a cautious, gradual implementation strategy to balance potential benefits with risks.

The proposal also aims to bolster Brazil’s digital currency, Drex, by promoting blockchain innovation and establishing Brazil as a hub for digital finance.

Legislative Status

The bill is currently being deliberated in the Chamber of Deputies, with no committee approvals secured yet. The rapporteur’s positive recommendation marks an early step, but the legislation must still be reviewed by the Technical, Constitutional, and Financial Committees before advancing to the Senate. Final approval would require Senate passage and presidential assent. As such, while the bill offers a promising vision for Brazil’s cryptocurrency adoption, it remains in early stages, with the legislative timeline still uncertain.

Brazil’s Crypto Ecosystem and Global Context

Brazil has fostered a crypto-friendly environment, with 17.5% of its population holding digital assets, according to a 2025 Payment Expert report. The 2022 crypto regulation law provided a legal framework for digital assets, supporting the development of Drex, Brazil’s central bank digital currency. The ResBit proposal complements these efforts, positioning Bitcoin as a strategic asset alongside Drex and a hedge against global economic uncertainties.

Globally, the bill shares similarities with the U.S. BITCOIN Act of 2025, which proposes a national Bitcoin reserve but has faced legislative hurdles. El Salvador’s 2021 adoption of Bitcoin as legal tender and its holding of over 6,200 BTC, valued at roughly $665.74 million, offers a precedent.

The ResBit proposal highlights Brazil’s ambition to leverage cryptocurrency for economic resilience and technological advancement. However, challenges include managing Bitcoin’s price volatility and implementing robust security for large-scale holdings. The bill’s fate depends on navigating a complex legislative process and addressing concerns about financial risks.